In a Nash equilibrium, firms are clearly strategically interdependent and:
A) they cooperate with each other to determine market outcomes.
B) they determine price in a closed auction bid system.
C) they are dependent on differentiated goods.
D) they are non-cooperative in determining market outcomes.

Question

Quizplus · Accepted Answer

In a Nash equilibrium, firms are non-cooperative in determining market outcomes. This means that each firm is acting in its own self-interest, taking into account the actions and strategies of their competitors. There is no explicit cooperation or collusion between firms.

In a Nash Equilibrium, Firms Are Clearly Strategically Interdependent And